Dr. John Psarouthakis, Founder and former CEO, JPIndusries,Inc., a Fortune 500 industrial corporation. . Currently, Distiguished Visiting Fellow / Professor, University of Edinburgh, Scotland. He is the Executive Editor of www.BusinessThinker.com
The job numbers reported by the U.S. Labor Department today were very disappointing. Lower than hoped 115,000 jobs were created in the U.S. in April. The unemployment rate fell to 8.1%, whatever that means these days. The government’s unemployment rate doesn’t take into account people that are underemployed and cannot get a full time employment. Nor does it include people who have given up looking for work. If we include these unfortunate persons the real unemployment is closer to 15%
We are experiencing the worst post-recession economic recovery since the great depression. The historically low interest rates and the government’s printing of over $2 trillion have kept the economy from falling into recession again. Today’s employment numbers is a clear indication that we have yet to see an economy structural improvement. If the economy does not accelerate soon the odds are in the direction of a mild double deep.
Recession is “Expanding”
It looks like that Britain joined into recession Italy, Ireland, Greece, Denmark, Portugal, the Netherlands, Belgium, and Spain. France is moving in that direction as well. If we add that China is growing at slower rates than in the recent past and if these recessions become somewhat “deep” then Germany will find herself also in economic straits. Germany’s exports, 30% of GDP, will slow down significantly and her economy will suffer measurably. If all the above hold true into the future then you can all guess well what would be the effect on the USA economy and employment! It won’t take much of anything for a recession to revisit the USA
This is the second review article on the President since he took office.
President Obama is going into history as the first African American elected to the presidency of USA. However, he might also go into history as a one term president because of the economy travails, and lack of apparent leadership. He has, in my opinion, created an image of arrogance and lack of effective leadership. He is becoming a polarizing force in the political spectrum of the country.
He has developed an atmosphere of uncertainty with his approach of decision making. Even the most important legislation of his administration to date, Health Care Law, he delegated the initiative to former Speaker Pelosi until it looked doubtful it will pass. He then got involved in what many called “Chicago politics” to pass the bill.
Some commentators hold that the government’s reformist staff and the President would have been capable of tackling the country’s very acute problems were it not for resistance from the party’s left wing guard. Perhaps that is true. But the voters who picked President Obama in November of 2008 were voting for change which was never spelled out during the campaign.
Dr. Periklis Gogas is an invited contributor to The Business Thinker magazine. He is a faculty member at Democritus University of Thrace, Greece, teaching Macroeconomics, Banking and Finance
For many years now in Greece, even before the recent fiscal crisis, the public sector and the government employees were targeted by Greek national media and the public as the source of many problems that clouded the country’s future. At the center of the debate there is always the myth of the “high” salaries paid in the public sector, the constitutional provision for the permanence of public servants and their alleged low productivity. At the same time, many young people in Greece have as a career objective to work for the public sector. Continue reading